Is investing in diamonds worthwhile? The opinion of gem experts

Diamonds have always been considered one of the safest investment assets, but the question many ask is is investing in diamonds worthwhile?

A shelter asset par excellence, their value is stable and universal. Are you interested in buying a diamond but still wondering if it is truly advantageous? Continue reading today’s guide carefully. The expert gemologists at Ferro Gioielli are ready to clear your doubts by explaining the real pros and cons of this investment.

Diamond stability over the years

In the current historical period, there are many challenges to face. Inflation and rising raw material costs have alerted many people who, worried about the fate of their savings, have set out to find the best investment opportunity.

Speaking of diamonds, yields and prices have always proven stable. An example? In 2014, a 1-carat diamond, color F, clarity VS was around 6,500 euros. Today, the same diamond is worth as much as 10,000 euros. Although the increase in value is steady, the time frame to enjoy a noticeable profit is about a decade. Thus, in 10 years, our diamond will gain a capital increase of about +3-6% per year.

Investment diamonds. What to expect in times of crisis?

Compared to stock markets or raw materials like gold, diamonds have so far not suffered the effects of major economic downturns. Unlike the aforementioned, the stable and steady growth of this precious stone protects investors from well-known risks of loss. Investing in diamonds is not recommended for those aiming for a significant and immediate financial return. On the contrary, it is suitable for those who wish to lock up a portion of capital in a solid and lasting asset, diversifying their wealth and enjoying the many benefits of investing in physical raw materials.

Many ask us, how much is it advisable to invest? One guideline is to diversify assets as follows:

• 1/3 in real estate
• 1/3 in fixed-interest securities
• 1/3 in movable assets (gold, diamonds, coins, luxury watches, paintings, etc.)

The experience of our gemologists leads to the assertion that diamonds remain, in general, one of the best investment goods, provided the quality and conformity of the chosen precious stone.

Not all diamonds are the same: how to choose

Diamonds are not all the same. Discover the 4 Cs of diamonds. An investment diamond must have very specific characteristics, namely to be easily resellable on the market. Buying one or more stones of small size allows you to cash out more simply and quickly, should the need arise. A common investment method is to buy diamonds in sealed packages and certified. IGI, GIA, and HRD are the acronyms of three of the most important international certifications and represent a true identity card of the diamond drawn up to prove its characteristics and authenticity.

What are the qualities that an investment diamond should normally have? We summarize them below:

• Color from E, a shade identifiable only with special instruments, to H;
• Clarity VS1 - SI2; the diamond shows minor imperfections and inclusions of minimal size or hardly visible to the naked eye;
• Cut "Excellent" or "Very Good", guaranteeing in the first case maximum brilliance, in the second a very wide light reflection;
• Weight in carats from 0.50 to 2 carats;
• Fluorescence from absent to minimal.

Where to buy an investment diamond?

Given the complexity and exclusivity of this market, it is advisable to purchase from physical locations willing to guarantee buyback within a certain time frame. This is a factor to consider: it is pointless to buy a diamond at a good price if there are little or no resale possibilities.

Buying a diamond in a jeweller’s shop: why?

Asking why buy a diamond in a jeweller’s shop is like asking

Why buy bread at the bakery?

The answer in both cases is simple: because it is the proper place to deal with such items. Relying on those who do not treat diamonds as the core business of their activity exposes you to the risk of encountering “unscrupulous experts”: newspapers are full of similar cases. Online purchases can also hide pitfalls. Bait prices await uninformed buyers who, attracted by the competitive price, do not worry about the actual resale value of their item.

What sense does it make to buy an investment diamond if then it cannot be resold?

Thanks to the continuous flow and consumption of this product, jewellers allow you to buy and resell your precious stone with some speed. In the case of plans to buy multiple stones, you can also obtain a greater discount on the total. Finally, you will count on a highly specialised staff who will transparently indicate the solution suited to your precise needs.

Do you want to buy an investment diamond and use it to create a custom-made jewel for Him or Her? Create your personalised project now.

Jewellers usually have a long tradition behind them as a guarantee of quality, under penalty of loss of reputation.

Is investing in diamonds worthwhile? The gemologist’s opinion

The answer to today’s question is therefore yes. Investing in diamonds is worthwhile in terms of long-term durability, taxation, and transmission along the inheritance line. Their non-metallic composition makes them less targeted by wrongdoers. Small, discreet, and reusable, they spare the worry arising from constant monitoring of market changes. However, it is essential to rely on accredited professionals, whose work is to protect you from mistakes, whether accidental or deliberate. Buying diamonds is a sound investment, but choosing a serious professional is the best investment. Do you have doubts or questions? Our accredited gemologists are at your disposal, book your consultation now.